Ross Stores Inc. (NASDAQ:ROST) reported second-quarter earnings that exceeded Wall Street expectations despite tariff-related costs, while projecting steady sales growth in the second half of the year. Shares rose about 2% in premarket trading Friday.
The discount retailer posted earnings of $1.56 per share on revenue of $5.53 billion, compared with consensus estimates of $1.53 per share on $5.54 billion. Tariffs reduced earnings by roughly $0.11 per share, though the impact was at the low end of the company’s earlier forecast of $0.11 to $0.16.
Same-store sales rose 2%, meeting the high end of company guidance. Analysts at Evercore ISI said results were stronger than expected given spending pressures mid-quarter.
Looking forward, Ross projected same-store sales growth of 2% to 3% in the third and fourth quarters. Based on that forecast, EPS is expected at $1.31 to $1.37 in Q3 and $1.74 to $1.81 in Q4. For the fiscal year ending January 31, 2026, earnings are expected in a range of $6.08 to $6.21 per share.
“We anticipate pricing across retail will move higher as we progress through the year, which will lead consumers to seek more value this Fall season,” the company said.
Evercore ISI raised its Q3 same-store sales forecast to 4% while maintaining its 3% outlook for Q4, adding Ross is well-positioned to outperform second-half guidance.
